Can Pepe Coin Rally to New ATH as $1M in Shorts Get Liquidated?

Key Insights:

• Pepe Coin price surged 68% last week, hitting $0.00001453, surpassing the 200-day EMA and 61.80% Fibonacci level.
• PEPE futures Open Interest nears $600M, reflecting a surge in leveraged trading as $1M short positions liquidate.
• Spot inflow hit $18.55M last week, signaling strong buying pressure despite short-term profit-taking.

Pepe Coin (PEPE) recently surged by 68% in a week, reaching $0.00001453, surpassing the 200-day Exponential Moving Average (EMA) and the critical 61.80% Fibonacci level. The bullish momentum has pushed PEPE closer to a potential breakout, with $1 million in short positions liquidated, signaling a possible rally toward a new all-time high.

Pepe Coin Price Breaks Key Technical Levels as Bulls Return

Pepe Coin price has soared big time from $0.000005698 in March to $0.00001453 this week. This upward movement has pushed Pepe coin above the 200-day EMA, one of the most important indicators that signal a reversal from a downtrend to an uptrend.

In addition, the break above the 61.80% Fibonacci retracement level at $0.00001426, long recognized as an important level of resistance, showed strong bullish potential.

In addition, this upward momentum has been supported by the emergence of a rounding bottom, a bullish pattern indicating a shift from a downward trend to an uptrend. The occurrence of this shape on the daily chart means that there may be a rise of 170% with the next key milestone at $0.00003864.

On the downside, failure to maintain support above the 38.20% Fibonacci level near $0.000010 could risk nullifying the current uptrend. If the scenario plays out, traders can seek to re-establish positions around the $0.000007669 level, creating the next key supportive zone.

PEPE Open Interest Nears $600M Amid Bullish Momentum

Consequently, the recent surge in Pepe coin has been accompanied by a sharp increase in derivatives trading. According to Coinglass data, the Open Interest (OI) in PEPE futures is approaching the $600 million mark, reflecting a substantial increase in leveraged trading activity. This surge in OI often indicates growing trader confidence and the potential for larger price movements.

In the last 24 hours, over $1 million was liquidated in short positions, prompting bearish traders to close their positions. Such an increase in short liquidations is likely to reiterate the upward movement, as traders who are forced to cover their shorts can add extra demand for the cryptocurrency.

This development aligns with the rising positive sentiment around PEPE, further fueling price gains if current support levels hold.

Strong Spot Inflows Signal Sustained Buying Pressure

More so, Coinglass data showed that the latest figures released show a huge inflow of PEPE exchanges, with net $18.55 million flowing into spot markets last week. This surge in spot inflows suggests strong buying pressure, despite the short-term profit-taking observed among retail traders. Such substantial inflows often indicate that larger investors are positioning for extended upside, supporting the case for a sustained rally.

Additionally, IntoTheBlock’s further analysis demonstrated that PEPE coins experienced high turnover levels, with an average holding period of below one month, suggesting a dynamic and regularly trading community. This short holding period, combined with significant spot inflows, reflects a fast-paced trading environment that could amplify price swings.

Meanwhile, recent analysis indicated that Pepe coin price broke out of a falling wedge pattern, a classic bullish reversal setup. This move was confirmed by a close above the wedge’s upper resistance line, signaling a potential shift in market sentiment.

Additionally, whale activity surged, with a 1.5 trillion PEPE coin withdrawal reducing exchange reserves. This decline in available supply may limit immediate selling pressure, reinforcing the case for a sustained price breakout.

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